The Financial Conduct Authority (FCA) has officially confirmed an increase in award limits for the Financial Ombudsman Service, effective from 1st April 2023.
The changes have been made in accordance with inflation adjustments, as measured by the Consumer Prices Index (CPI).
The award limit is the maximum amount that the Financial Ombudsman Service can require a financial business to pay when complaints are upheld.
Under the new guidelines, the award limits will be:
- £415,000 for complaints referred to the Financial Ombudsman Service on or after 1 April 2023 about acts or omissions by firms on or after 1 April 2019
- £190,000 for complaints referred to the Financial Ombudsman Service on or after 1 April 2023 about acts or omissions by firms before 1 April 2019
Different limits apply depending on when the complaint was brought to the Financial Ombudsman Service.
Information about current and previous limits can be found on their understanding compensation page.
The Financial Ombudsman Service will be updating the guidance on their website to reflect these changes from 1st April 2023.
The FCA’s policy statement PS19/8 sets out the full background to increasing the award limits. The change can be seen in the FCA’s handbook.
